On July 18, 2021, Philly Furniture Factory sold 20 reclining rockers to Dave's Discount Furniture for $8,000, subject to terms 2/10, n/30. Philly uses the net method of accounting for sales discounts. Required: 1. Prepare the journal entry to record the sale. 2 & 3. Prepare the journal entries to record receipt of the payment, assuming the correct amount was received on July 26, 2021 and August 15, 2021.

Q: Kristopher Company sold $40,500 of goods to Evan Company on credit on March 1, 2022. Terms were…

A: A journal entry is a summary of a commercial transaction in the accounting system of a company.…

Q: on december 1, 2019, pinewood company sold machinery to a customer for $2000. pinewood regularly…

A: Note Receivable: A written promise from a client or customer to pay a definite amount of money on a…

Q: On 12th January 2018, Megamart company grants an allowance to a Max traders, a customer of RO 2,600…

A: Sales allowance is reduction of price when customer keep the product but he is not satisfied with…

Q: Lamps Unlimited, a wholesaler, sold several crates of lighting for $3,100 on account, to a customer…

A: Credit terms of 2/20, n/60 indicates:- If the payment made within the 20 days, 2% discount will be…

Q: Oriole Industries purchased $13, 200 of merchandise on February 1, 2025, subject to a trade discount…

A: The gross method under the perpetual inventory system is the way of recording the inventory which…

Q: Q2) Masader Co. purchased merchandise on March 4, 2018, at a price of OR30,000, subject to credit…

A: In net method of recording purchases, purchases are recorded net of discount. If the payment is not…

Q: Hall Inc. made a $30,000 sale on account with the following terms: 2/10, n/30. If the company uses…

A: In case of net method, the sales discount is not recorded only the net amount will be recorded in…

Q: On March 1, Lincoln sold merchandise on account to Marigold Company for $29,000, terms 1/10, net 45.…

A: (1) Debit what comes in, Credit what goes out. (2) Debit all expenses and losses, Credit all…

Q: Based on the foregoing information, determine the adjusted balances of the following as of March 31,…

A: Doll Company is selling sounds and lights equipment. The company's fiscal year ends on March 31,…

Q: On 10 July 2021, Pop Music sold CDs to retailers on account and recorded sales revenue of $700,000…

A: These are the accounting transactions that are having a monetary impact on the financial statement…

Q: On June 3, 2022, Marigold Company sold to Ann Mount merchandise having a sales price of $7,600 (cost…

A: Lets understand the basics.Journal entry is required to make to record tranaction and event happen…

Q: Barans Company purchased merchandise on account from Springhill Company for $10,600, terms 2/10,…

A: Net Purchases = Purchases - Purchase return = $10,600 - $2,200 = $8,400

Q: After the amount due on a sale of $24,300, terms n/eom, is received from a customer, the seller…

A: Journal Entry :— It is an act of recording transaction in books of account when transaction…

Q: An invoice for $9156.86 is dated June 23, 2022 with terms 4/10, 2/20, n/60 ROG. The goods are…

A: Here 4/10 means 4% discount will be given if payment is made with in 10 days.

Q: A retailer purchases some merchandise with an invoice price of $19,900 and terms of sale of 5/15,…

A: Discount on sales value: When the customer pays the amount within discount period then customer is…

Q: Doll Company is selling sounds and lights equipment. The company's fiscal year ends on March 31. The…

A: Bond Amortization Amortization of bond which are include with whether it is treated in the interest…

Q: Meteor Co. purchased merchandise on March 4, 2021, at a price of $40,000, subject to credit terms of…

A: Requirement 1 Purchase - March 4, 2021 Merchandise $40,000(debit) Liability- Trade Payable…

Q: Goods costing $20,000 are purchased on account on April 1, 2021, with credit terms 2/10 n/30. On…

A: Given that, $20,000 are purchased on account on April 1, 2021 credit terms 2/10 n/30  On April 3, a…

Q: They sold $100,000 worth of goods on credit, with terms 3/10, n/20, on 2/1/2021. Record this…

A: Term 3/10, n/20 represents that if the payment received for the sales made within 10 days then the…

Q: Magnum mart purchased goods on 4th January 2019 for RO 86,000 on credit under the payment terms…

A: Discount=Accounts payable×Rate=RO 86,000×2%=RO 1,720

Q: On January 10, 2022, Buffalo Industries sold merchandise on account to Tompkins for $8,170, terms…

A: Journal Entry :— It is an act of recording transactions in books of account when transaction…

Q: Whispering industries purchased $8,100 of merchandise on february 1, 2025, subject to a trade…

A: Under a periodic inventory system cost of goods sold will be calculated at the end of the period…

Q: On July 15, 2024, the Niche Car Company purchased 2,700 tires from the Treadwell Company for $30…

A: The objective of the question is to prepare the journal entries for the purchase of tires by Niche…

Q: Sold Merchandise for $5,000 to Lee Corp on account on December 9. Cost of the merchandise was…

A: A journal entry is defined as a process of recording the transactions in the books of the company.…

Q: Whispering industries purchased $8,100 of merchandise on february 1, 2025, subject to a trade…

A: The net method of purchase in accounting is akin to grabbing a discount at the store. It records…

Q: They sold $50,000 worth of goods on credit, with terms 3/10, n/20, on 2/1/2021. Record this journal…

A: Net Method         Journal Entries Date General Journal Debit Credit 2-1-2021 Account…

Q: EC Ltd. is a merchandising company. The company uses the perpetual method in recording its…

A: Jan 15th, Brian co.   Dr. $100000 Sales    Cr  $100000 (Being goods sold on account)   COGS    Dr.…

Conversion Cycle

Conversion cycle is also known as cash cycle or net operating cycle. Conversion cycle refers to how much time a company takes to turn its investments which is done from stock or any other financial resources into cash flows from sales.